Silver closed at $8.07 per ounce on Thursday, and gold closed at $485.70. Pardon me for rubbing it in a bit, but I told you so. (See my August 6, 2005 post.) Since $8 is a psychological barrier, there will likely be some profit taking for the next few COMEX [1] market days, so if you missed the boat, you may be able to buy on the dip. But then get ready for the bull to resume his charge. I am still convinced that the metals are just a few years into a long term “secular” bull market. NewsMax [2] reports Gold is already up more than 11% this year. Meanwhile, Bloomberg reports that gold’s rally this year has exceeded the paltry 2 percent gain in the Standard & Poor’s 500 Index. U.S. Treasuries have returned 1.7 percent, heading for the worst annual performance since 1999, according to Merrill Lynch data.
My prediction: Silver at $40 per ounce by the end of the second term of the Bush administration. I’m not kidding.